Contain thc. We will have the details. Ticket pact. Several car committees band together with california to reduce emissions, even after efforts to ease restrictions on carmakers. President trump calls the action illegal and now the Justice Department is investigating. But first over top story. I think trade war escalates, the job market decelerates, or so the u. S. Jobs reports indicates. At 130,000, below what was expected. Despite those numbers, president tellss top economic visor say uber he believes in the strength of the u. S. Tech sector. We are the world leader in technology, innovation, application, and new business startups. We are the world leader. Technology. Jewel,ogy as our family and we must protect america on that. That is the president s point of view. Joining me to discuss is mike sullivan. , you heard it there. Tech is the crown jewel. Do you agree . Michael i do. Tech is a big sector that is going fast. We are theknow if exclusive world leader on that, but we are doing really well. Taylor aside from some of the jobs report which i want to get into, a lot of the conversation has been about trade. Do you see it higher within the tech sector . Michael not directly, but what we are seeing is trade and the trade war influencing the overall economy, and we are heaving talk of hiring freezes, layoffs. We are starting to see that. What we are seeing in the tech sector is companies are trying to hire much more quickly than they were before. I think for fear that summary will pump the brakes. We helped negotiate a job and they moved quickly and were willing to give us what we were looking for for that person. We are also starting to see on the file inside an increase in demand because the hiring is slowing. Taylor interesting because i heard a lot about business hesitation and summaries about hiring because they are not quite sure how the trade fight will work out. So you are seeing the opposite. You are seeing companies at speed up hiring to get ahead of it . Michael yes. They want to get people in these key roles before somebody at the top says hiring freeze. Taylor very interesting. Ok. Talk to me about todays jobs number. Number not good. Michael we will see changes coming to the rest of the economy as a result of the tech sector. We in the tech sector are creating so much efficiency and building such great products and products and technology and software. We are just at the beginning of seeing what is going to happen. As this downturn comes, and it will, we will see a lot of jobs that go away that are never going to come back. Taylor i want to come in my terminal here at gtp go. From the markets perspective, software has outperformed hardware as we think software is less vulnerable to the trade war. Michael correct. Taylor are you seeing that play out in the job market . Michael not directly, but we are at the tip of that iceberg because as companies are having to rethink their manufacturing chains, they are having to rethink everything around technology. Everything around hardware, software and where they are manufacturing it, and how much it costs. We are seeing a lot of Companies Start to prepare consumers that you will be eating some of the cost from this trade war. Taylor it was very interesting within the jobs data. We noted more people are working more jobs. Two or three jobs because frankly one job is not cut it anymore. How does that fit into the economy . Michael that was a really notable part of the report. The section of people who are dissatisfied were not able to make enough money and moving out of fulltime jobs because they cannot get them into gig economy is growing. We will see that. That has been happening for years. It will keep happening for a while. I believe the public thought the gig economy was a choice. We represent at the highest levels of Technology Creators that it is a choice, but for many people doing two or three jobs, it is because they cannot get a job. That is where the jobs numbers that happen coming out are a little bit misleading. They are both misleading because they dont really factor in people that have fallen out of the unemployment numbers, but they are also misleading because they are not counting these people who end up in this category. Taylor a decade ago, San Francisco was the only place to do tech. Or san jose, Silicon Valley. More and more, it is spreading out. D. C. And new york within top five places that tech jobs are being created. Is tech spreading to the east coast as well and texas, for example . Michael everywhere. Any company that things they are not a tech company is not going to be a round for a long time. This is how you have to be thinking. You have to create efficiencies. There is so much opportunity between automation and ai that if you are not thinking about this stuff, and the implication is massive and scary, but from the standpoint of being a Business Owner or running a company for shareholders, you have to be looking at this. Kiosks to bought 3000 replace cashiers. That is the beginning. We all heard about the driverless car revolution that is coming. We will see it across the many sectors. Taylor talking later this summer about Goldman Sachs trying to hide some coders as well, survey analysis. That was michael. Thank you for joining me. Now in japan, pushing back a lot of a mobile phone service originally set for next month. That is as shares of the ecommerce companys giant down by the most since may. A limited trial will begin october 1 and the fullscale rollout will happen between the month after that and the end of the year. Coming up, huawei tries to circumvent u. S. Trade sanctions by exploring gmail alternatives. More on that as well as expectations ahead for next months u. S. China trade talks. If you like bloomberg news, check us out on the radio. You can listen to us on the bloomberg app, bloomberg radio, and in the u. S. On sirius xm. This is bloomberg. Taylor companies affected by u. S. China trade sanctions, huawei plans to unveil an updated phone running googles latest software in some regions. It would be huaweis first major update to the p30 pro phone since the restrictions which slashd the company to revenue projections by 10 billion. At the same time, huawei seems to be coming up with efforts to make up an encrypted email service on future mobile devices, getting away from googles gmail. With details, Bloomberg TechnologyAlistair Barr from San Francisco. The key for me is this was an updated software, not a new one. Is this how they avoid sanctions . Alistair this is one way to do it. They already had the stone out and are going to be basically doing a major update to it. The rules the u. S. Has imposed on suppliers to huawei, they revolve around new products, so a newhuawei putting out phone, google will have a trouble providing huawei with the system and the google apps like gmail and google maps that go with that. That is the small loophole that huawei is jumping through right now. The problem will come when they actually want to do a brandnew phone, which may come a little later this year. That one is likely to be theping without android, official Google Android and google apps. Taylor that was one of my key questions, is you have customers that might be ok for now with an updated software. How long until they become frustrated enough that they dont have the new software, that they start to switch away from huawei . Alistair i think that is a big risk for sure. We were looking at one note today from gene munster, who is a veteran apple watcher, and he was saying this actually might be good news for apple in europe. Really, it will probably lead premium providers because huawei will struggle if they dont come with the official Google Android system when they ship. Taylor alistair, what is huawei s longterm game plan . You think when android comes out and apple comes out with the new phone, what does huawei do . What is there longterm solution . Alistair the longterm solution is to build an operating system of their own, which they are working on, so they dont need android. The problem comes when you are outside of china. People expect an Android Phone to have gmail, google maps, the google play store, which is the important one, where you can get all the other apps through the play store. Huawei is going to have to build an app store itself, build an operating system itself. And the news that came earlier today about this other email service, proton mail, that is one of the examples where huawei is going to have to go out and provide an alternative to gmail and google maps and all these other google services. Taylor quickly, alistair, is that proton mail enough to satisfy huawei and customers in the shortterm . Alistair proton mail is a very specific service to people really concerned. It charges a monthly fee right now. That might be a bit of a stretch for a lot of people. Taylor thank you. That was Bloomberg Technology s alistair. It may not be on the table in the next round of talks in october. That is according to a statement by President Trump on wednesday in which he said huaweis a National Security concern. The comments came a day after accused washington of work spreading a campaign to intimidate its employees and not cyberattacks. Lets get insight on the trade talks next month from greg allen in washington. He is president of the u. S. China business council. It seemed at least for this week trade tensions sort of simmered down. Would you agree . It is, i would agree, but on very little information. The only thing that we really know is that there will be a vice minister meeting sometime f thatember followed by is successful, the vice premier and secretary meeting or cabinet level meeting in october. But none of that is certain, so the information we are working on is indeed very sparse. Taylor any idea specific details that we want . Is it ip theft . Is it that huawei is a National Security concern . Is it soybeans . What is trade coming down to . Craig when you go back to the original source of the problem, there are probably six items that were very important. Intellectual property rights, of Course Technology transfer, state owned enterprises, subsidies, market access, and cybersecurity or hacking. All of those are important issues. I think a lot of progress has been made on all of them. That does not mean that we can get to a solution to an agreement. But the fact that we are going into our 13th round of negotiations is a very good sign. Will 13 be the lucky round . That remains to be seen. Taylor we spoke with let because low this morning. The trumpet ministrations chief economic advisor. I wanted to hear about what he has to say about the next round of traits. Larry there are no conditions. They are coming to talk and we welcome them with open arms. Our team would like to go back and pick up where we left off in the may talks. Whether that will be possible remains to be seen. I dont want to predict it. All i know is we got a new round of talks and i think that is a very hopeful development. Taylor craig, your reaction . Craig so, this is number 13. The fact that the two sides are meeting is a very good thing. At the same time, i would not want to exaggerate any shift on haver side than indeed we quite a few new sanctions in place. We have tariffs going out on october 1. We have a large round of tariffs going up on december 15. Does that help negotiations were hurt negotiations . Are we closer to a deal or further away from a deal . I think time will tell. I appreciate Larry Kudlows optimism. He knows a lot more than i do. I hope that he is right. We have to wish the negotiators well. Taylor talk to me about the next round of tariffs. On september 1, as you mentioned, within the technology sector, you have your pods, a lot of Hardware Devices that really get the consumer come into effect. December 15 from as we know from a retail, holiday, shopping season. What are you looking for from the december 15 tariffs that can hurt the consumer . Craig on december 15, there will be 170 billion worth of imports which will be subject to 15 tariffs. Now, that is a lot. It is a lot of imports and a lot of tariffs. It will absolutely have an effect at the till, at the cash register. This will be inflationary. Now that is on top of, as you just said, september 1 tariffs. And another round of tariffs coming on october 1. And so this will have an impact on cpi. It will have an impact particularly on lower income americans. Tax, and itonly a happens to be a very regressive tax that affect slow income americans more than others. To begin to feel the impact of that, i regret to say. Taylor you talk about how the devil is in the details. I think both sides want a deal, but the problem is getting there and meeting in the middle. Huawei, for example, i know you cannot speak specifically to it, frankly is a nonstarter from the chinese side, and from the u. S. Side, it is deemed a National Security concern. Where do we stand generally as it relates to National Security and trade, lumping them together, and then you get huawei . Craig that is a chemical looking a question. Huawei is a perfect simple of the complicity that we face here. Cfo in rest of the vancouver awaiting extradition to the United States again is a point of real tension. The president has said he is willing to consider this as part of the trade deal. He suggested otherwise as well. Having said that, we have next National Security and trade policy. Not a good thing to do, but it has already been done. Perspective, i understand their negotiating position is that they want to settle this deal as well. Complexity, but it does not make it impossible. Certainly a plea bargain, some sort of an arrangement can be made by which huawei admits to breaking u. S. Law without necessarily admitting that they broke chinese law. Such a deal is possible. And im sure such a deal is being considered. Taylor like you said, very complicated lumping the two together. Coming up, Health Concerns continue to stir around thc vaping, but what does that mean for the ecigarette companies . We discussed, next. This is bloomberg. Taylor marijuana vaping products have become increasingly popular in recent years as a discrete way to take a quick puff of pot. But suddenly, serious lung illnesses have struck people leads vaping devices to many cases of products that contain thc. Many researchers have come out with new information on vaping in the last few days. Health questions still remain when using ecigarettes. To discuss, we are joined by craig. Craig, you have been covering this. Im relatively new. Break it down for me. Ecigarettes, vaping, same or different . Craig basically the same. In common parlance, they are often talking about marijuana, but jewell is a type of a vague as well. Ecigarettes are type of a vape as well, but they refer to Tobacco Products that people used to often quit smoking or cut back on smoking, but vaping and ecigarettes is like the next and tissues. Different ways of saying the same thing. Taylor to be clear, the cdc was talking about mostly thc related illnesses. Craig thats right. Taylor that is different from the black market sometimes. Craig in the news today, there have been hundred of illnesses in the country. Three deaths now. Going on. Ws what is what the cdc is saying today is most of these people have been vaping thc products. These people are in states where marijuana is not legal, which means they are acquiring blackmarket thc products. That is the concern is heightened now about they have suddenly become very popular in the u. S. Over the last couple years. They are available in Legal Marijuana markets and widely available on the black market including new york and other places. That is the concern now, the people appear to be being affected. Taylor when we got the headline, what does this mean for companies for which they have stakes in . Jewel for example. Craig jewel has been under fire because of the concerns about a lot of teams julie and how it has gone popular. They paid 12. 8 billion in that state. The reason why ought to react comes up on the news au comes ria comes up as they are worried about thc. Handip morris on the other have spent billions of dollars on heat, not burned technology. It looks like a cigarette, put it in a device, inhale it and they argue it is less harmful than cigarettes. They have high hopes for it. They are going to go headon at jewel and other products sooner rather than later. Taylor come into my terminal here at g tv because what im taking a look at his segment revenue of smokeless products. Grubbing agreement, no the highest it has been in multiple quarters. I wonder how this impacts the autry ideal with phillip morris. Can we assume a deal is on the table . Craig one of the rationales for putting the companies together has to do with the u. S. Both jewel and aikos. License tos the market it in the u. S. Phillip morris is saying now we are to go to market. Maybe we dont want to share the profits. We can reap all the benefits in the u. S. Plus, by the way, autria has a stake in jewel. Longterm, jewel will be a good option to get smokers off of cigarettes. We have to take care of this teenage problem but there is a future for jewel so that as part of the rationale. Taylor complicated story and you broke it down for me pretty well. Thank you so much. That was greg. Moreg up, facebook caught antitrust fire, this time from the state. We will give you the details on the latest investigation, next this is bloomberg. Next. This is bloomberg. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. This is Bloomberg Technology caret another day, another investigation. In anok now joins google antitrust probe, adding to the scrutiny of Silicon Valley giants. A Bipartisan Coalition of states sobing whether facebook iphone competition and put users at risk. , ben. G me to discuss we have another headline from google, saying they are confirming basically what we knew, that the u. S. Is requesting information on previous antitrust probes and this week, the more recent news that facebook in the crosshairs as well. Walking through this spirit is this a monopoly or privacy data issue . It sounds like on the google side, it is [inaudible] a demand for all previous documents provided to enforcers anywhere in the world. It that is going to be a lot of paperwork to go through and a lot of opportunity for theories. If you look on the other side, like it could be privacy and trust. Sounds like it is kind of early here, but there is a lot of probing in the last 24 hours. A lot of probing, including that record fine from just a few months ago. Is this different . Important is [inaudible] more laws and more people that can view more paperwork and more people that can say that is not good enough, you have to go farther. This is a lot of distraction for. Hose companies in a lot of ways, they are dealing with the same sets of laws. Ofis in general, a lot lawyers in the room and that means the companies become more cautious and less dynamic. It takes time to deal with these things. Case ofd me through the monopoly. You and i have had the discussion that monopoly has to hurt a consumer. How is the consumer being hurt . The companieshing are saying consumers love us and our products are free. , think just in the last year democrats and republicans have been saying consumer harm does aboutst have to be pricing. Ant to take look at look at some of these. ,hese are old measures particularly under republican administrations and now both sides say we want to bring these back. We think these me the better measures of what is going on and it may be possible that the real price here should be negative. Keyword here he said is innovation. If you break up big tex, they cannot compete with china. That is what companies are coming here and telling enforcers. I think that is something you can tell congress. Ultimately, they have to weigh different prescriptions. Concerned say we are with the breakup in the market and they have to see if there is a violation or not. Thank you for joining me. Facebookwith facebook, plans to double its headcount in thanork city and hire more 3000 people over the next five years. The expansion could set facebook up with a clash with some of the biggest firms in finance including Goldman Sachs. , olivia. O discuss it is starting off with investments in Digital Technology and now on the flip the otheris, technologies coming for wall street. Facebook saying they want to double the count here in new the and during research for story, i was looking at the profiles. Is it because they were at those Big Companies or new york for tech savvy people . I feel like a lot of engineers coming out of those institutions had traditionally gone into the finance sector and facebook looking to recruit engineers, they are also now and look target towards the finance sector. We spoke to one Recruitment Firm and it is the fiercest she has ever seen big cut and it is expected to get worse. It wants to increase its 8002 14 2000, 15,000. With the fierce competition comes an increase in salary. To pay tooney compensate the coder for facebook . The companies are actually paying more than finance and traditionally you were not have thought that. Engineer, a subway makes around 100,000 at the moment, so the talent is going to follow the money. There was a lot of backlash when amazon pulled out their second quarters here of highquality jobs. This arguably is a very good thing. Is that as well what you learned . At think it is just going to. Oost new yorks profile we know it is second only to the bay area when it comes to raising capital and we have giants looking to hire more and more people. Do you get the sense that things are becoming more Like Tech Companies or Tech Companies are becoming like banks . [inaudible] Goldman Sachs is looking to hire 100 coders over the next three months. We all need to learn how to code. Thank you for joining me. Up, facebook and google are not the only companies under investigation. U. S. Ll break down the Justice Departments latest probe of automakers next three. [no audio] thatthe trumpet minute by the Trump Administration to ease back on standards. Very complicated story it sounds like it is morgans california than the automakers. We have to take a step back where the automakers were brought along with that administration on tougher fuel economy rules, but they were so slowly graduate there. Carmakers got concerned that the rules were going to be too tough and they got that with the Trump Administration, but what the Trump Administration date is go overboard. Downwanted to water things. Theyve had an ability to set tougher rules and what the automakers didnt want is for the fed to set significantly weaker standards. Having toesult in meet these wildly different roles depending on where you are selling in the u. S. Select he said, it leaves the period of in a oeri uncertainty. What are the automakers saying . For the Trump Administration to take a look at the rules, but what they didnt want is the administration to go to war with california at they essentially have done and so what you have sayo to california and lets dial the standards down a little bit, but we will agree to hit the tougher standards as pi deal. Here is a one lawyer in the story asked if this was not an aticompetitive case and procompetitive case. I think what he was trying to make is that the idea of the situation where the doj is stepping in to say if you cross the white house, youre going to hear from us. I think with the automakers, they want to compete on fuel economy because they know they will have to in other parts of the world. Of f they sell it a lot series pickups, they understand and appreciate they have to get with the times. Thatat about the case other carmakers dont get as much special treatment than those that did the deal of california . A situation where the automakers that did not get on the deal are really nervous. You have a report that maybe the city spends was going to get in on the report. We just had mary barra been using visiting. They want the uncertainty of planning for five years out for it is difficult when you dont know the rules of the road. Still ahead, a quarterbacks signal will not the only one you will be Pay Attention to mr. Boosting the game of wifi for fans next. This is bloomberg. On thursday, we work is tsgnificantly deevaluating i ipo. The cofounder is feeling the heat, but one of the companys most powerful investors could be hit even harder. Its affiliates own about 29 which means it is tied up in a big way. To discuss, im joined by sarah mcbride. I have to ask, how does sulfate valuationk respond to that is half of what it was . There is a lot of consternation about this, which was not nearly as enthusiastic about investing and we work as other parts of softbank and there is a lot of tension within the company over investment. A within that tension was meeting between softbank and we work . Year, we weres told that the valuation would be at least 47 billion and the evaluation is going to be closer to around 20 billion. Wheres the same valuation it is invested two years ago, but after that initial investment which was over 4 billion, softbank, other parts came back and invested over 6 billion more. Are going toents be very underwater. We know that softbank is an investor in uber, that ipl less than stellar. Any indication there is hesitation given the ipo market right now . I should say that softbank was a large investor in uber. Largest investor, but even then it was only 16 . Now we are talking about 29 . That is a huge stake. Of,uld say almost unheard so softbank is already dealing with ubers ipo not going well. It is trying to go raise more money for its second vision fund. Investment inarge the original vision, so softbank was hoping to be able to point to a big gain here. It looks like that is not going in via black mark on softbank overall. You talk about fundraising for the second fun. There was a boards that softbank was lending by percent to employees. Any sign that it is a lack of demand . Didnt catch that. A lack of demand for second round on raising for division ii . I think this is really hurting as it goes out to try to tout previous success. Slack, butoney on those are much smaller investments compared to its investments in we work. Great breakdown. Thank you for joining. The nfl season kicked off thursday night with the Green Bay Packers defeating the chicago bears, but not every i was glued to the react the action. Thanks to the deal, they will provide wifi and Analytics Solutions for the next three football seasons and to super bowls. I spoke about what data the nfl is downloading thanks to the deal. The nfl is all about Fan Experience so we provide infrastructure to the applications in the cloud and it is all about the Fan Experience, quality and the dated now is being used for new services, new solutions that stadiums are young to roll out, so if look at nc concessions, interactive Fan Engagement on the large screen or if you look at gambling from an application is interested. Theres a lot of different ways that the nfl can monetize the the fanenhance experience. One thing you said was perhaps in the future legalized sports betting. How big of that is that with the partnership of the wifi . It is important because they want to see what is going on at the stadium. Fans at the game want to understand what they are doing, so it helps them in their discussions with the different gambling providers are talk to me about data privacy. , it isthink about wifi when you go on wifi you know there is a potential to get hacked. You protecting privacy . Software and with you are spot on because security is a huge issue. In our industry, it is about hard work, but today it is about software. What they have to have is security to protect users as well as to protect the network and then systems they are running on the network. How much what they have to have is security to protect users as well as to protect the network [inaudible] and the systems they are running on the network. And the systems they are running on the network. [no audio] for us, we see it as an opportunity because the more bandwidth running, it means you will need more capacity in the wifi network as well. We started off talking about the Fan Experience within the stadium and a lot of that comes down to virtual reality. How much of that is part of this deal . Thatr us, we are providing connectivity and different applications over the network. Been one of the fastestgrowing areas in sports. The game of flirtation of different games or different simulations, these are things that are probably going to be part of the future of the fan. Xperience editiondoes it for this of Bloomberg Technology. Follow our global breaking news network at tictoc on twitter. This is bloomberg. In your career, you 118 majors, which is the most. Many think beating your record is possible. I dont know, tiger is pretty good. Days, thee compensation was pretty good. I was making as much money selling shirts at playing golf. What is the key that make someone break off . Golf . Hink great at would you fix your time